Quick Definition:
PESTLE Analysis is a strategic framework used to identify and analyze the key external factors (Political, Economic, Social, Technological, Legal, and Environmental) that can impact an organization or project.
The 6 Factors of PESTLE
- Political: Government policies, political stability, trade regulations.
- Economic: Interest rates, inflation, economic growth, exchange rates.
- Social: Demographics, cultural trends, consumer behavior.
- Technological: Innovation, automation, R&D activity.
- Legal: Employment laws, health and safety regulations, consumer protection.
- Environmental: Climate change, sustainability, environmental regulations.
Why Use It?
PESTLE analysis helps PMs understand the broader context in which their project operates, allowing them to identify potential risks and opportunities that may arise from external changes.
